MARKETING

Chapter 1~ Managing profitable customer relationships

1. marketing : the process by which companies create value for customers & build strong
customer relationships in order to capture value fr cust in return.
2. The marketing process :
Und the marketplace & cust needs

Design a cust-driven marketing strategy

Construct an integrated marketing program

tat delivers superior value

Build profitable relationships & create cust delight

Capture value fr cust to create profits & cust equity

3. Needs : states of deprivation, which includes basic phy needs 4 food, clothing, warmth &
safety; social needs 4 belonging & affection; indi needs 4 knowledge & self-expression.
4. Wants : the form human needs take as shaped by culture & indi personality.
5. Demands : human wants that r backed by buying power.
6. Market offering : some combination of products, services, info, or experiences offered to a
market to satisfy a need/want.
7. Marketing myopia : the mistake of paying more attention to the specific products a company
offers than to the benefits & experiences produced by these products.
8. Exchange : the act of obtaining a desired object fr some1 by offering sth in return.
9. Market : the set of all actual & potential buyers of a product / service.
10. Marketing management : the art & science of choosing target markets & building profitable
relationships with them.
• Production concept~consumers will favor products that r available & highly affordable, so
the orga shud focus on improving production & distribution.
• Product concept~consumers will favor products tat offers the most quality, performance &
features, so orga shud devote its energy to making continuous product improvements.
• Selling concept~cons will not buy enough of the firm's products unless it undertakes a large-
scale selling & promotion effort .
• Marketing concept~achieving orga goals depends on knowing the needs & wants of target
markets & delivering the desired satisfactions better than competitors do.
• Societal marketing concept~a principle of enlightened marketing that holds that a company
should make good marketing decisions by considering cons's wants, the company's
requirements, cons's long-run interests & society's long-run interests.
11. Cust driven und cust deeply bout wat they wan create products tat meet current
needs
12. Cust driving und cust needs better than cust themselves do create products tat
meet needs now & in future
13. cust relationship management : the overall process of building & maintaing profitable cust
relationships by delivering superior cust value & satisfaction.
14. Cust perceived value : the cust evaluation of the diff btwn all the benefits & costs of a
market offering relative to those of competing offers.
15. Cust satisfaction : the extent to which a product's perceived performance matches a buyer's
expectations.
16. Cust lifetime value : the value of the entire stream of purchases that a cust would make over
a lifetime of patronage.
17. Cust equity : the total combined cust lifetime values of all of the company's cust.
 18. Projected loyalty :
Butterflies:
Good fit btwn company's offerings & cust's needs ; high profit potential
True Friends:
Good fit btwn company's offerings & cust's needs ; highest profit potential
Strangers:
Little fit btwn company's offerings & cust's needs ; lowest profit potential
Barnacles:
Limited fit btwn company's offerings & cust's needs ; low profit potential

Chapter 2 ~ Company and Marketing Strategy:Partnering to Build Cust Relationships

1. Strategic planning : the process of developing & maintaining a strategic fit btwn the orga's
goals n capabilities & its changing marketing opportunities.
2. Mission statement : a statement of the orga's purpose – wat it wants to accomplish in the
larger environment. (b market-oriented, fit the market environment, b based on distinctive
competencies)
3. Busi portfolio : the collection of businesses & products tat make up the company.
4. Growth-share matrix :
Relative share market
Star Question mark
.
Cash cow Dog

5. Product / market expansion grid :

Ma Product development
rke
t
pen
etr
ati
on
Ma Diversification
rke
t
dev
elo
pm
ent

Existing products new products

6. market penetration : increasing sales of current products to current market segments without
changing the product.
7. Market development : identify & develop new market segments 4 current company
products.
8. Product development : offer modified / new products to current market segments.
9. Diversification : starting up / acquiring busi outside the company's current products &
markets.
10. Value chain : the series of departments tat carry out value-creating acti to design, produce,
market, deliver & support a firm's products.
 11. Value-delivery network : the network made up of the company, suppliers, distributors &
ultimately cust who “partner” with each other to improve the performance of the entire syst.
12. Marketing strategy : the marketing logic by which the busi unit hopes to achieve its
marketing objectives.
13. Market segmentation : dividing a market into distinct groups of buyers who hv distinct
needs, characteristics / behaviour & who might require separate products / marketing
programs.
14. Market segment : a group of cons who respond in a similar way to a given set of marketing
efforts.
15. Market targeting : the process of evaluating each market segment's attractiveness &
selecting 1 / more segments to enter.
16. Positioning : arranging 4 a product to occupy a clear, distinctive & desirable place relative to
competing products in the minds of target cust.
17. Differentiation : actually differentiating the market offering to create superior cust value.
18. Marketing Mix :
• Product ~ Variety, quality, design, features, brand name, packaging, services
• Price ~ list price, discounts, allowances, payment period, credit terms
• Place ~ channels, coverage, assortments, locations, inventory, transportation, logistics
• Promotion ~ advertising, personal selling, sales promotion, public relations
19. SWOT analysis : Strenghts & weaknesses (internal);opportunities & threats (external )
20. marketing implementation : the process tat turns marketing strategies & plans into
marketing actions in order to accomplish strategic marketing objectives.
21. Marketing control : the process of measuring & evaluating the results of marketing
strategies n plans & takin corrective action to ensure that objectives r achieved.
22. Marketing audit : a comprehensive, systematic, independent, & periodic exam of a
company's environment, obj, strategies & acti to determine problem areas & opportunities &
to recommend a plan of action to improve the company's marketing performance.
23. Returrn on marketing investment(ROI) : the net return fr a marketing investment divided by
the costs of the marketing investment. (measures the profit generated)

Chapter 3 ~ The Marketing Environment

Microenvironment
1. Company : top mgm, finance, R&D, purchasing, operations, accounting...(make decisions &
plans)
2. Suppliers : provide resources. (monitor the price trends of their key inputs)
3. Marketing intermediaries : help company to promote, sell & distribute its products to final
buyers.
• Resellers ~ wholesalers & retailers.Eg. Carrefour, Giant.
• Phy Distribution Firms ~ move goods fr their pts of origin to their destinations. Eg is
warehouse n transportation firms.
• Marketing services agencies ~ marketing research firms, advertising agencies, media firms
& marketing consulting firms.
• Financial intermediaries ~ banks, credit companies, insurance companies.
4. Customers : 5 types :
• consumer markets ~ indi & households tat buy goods & services 4 personal consumption.
• Business markets ~ buy goods 4 further processing / 4 use in the production process.
• Reseller markets ~ buy goods to resell at a profit.
• Government markets ~ to produce public services / transfer the goods & services to others
who need them.
• International markets ~ buyers in other countries.
5. Competitors
 6. Publics : 7 types :
• Financial publics ~ influence the company's ability to obtain funds.(banks, investment
houses, stockholders)
• Media publics ~ carry news, features n editorial opinions. (newspapers, mag, radio n tv
station)
• Government publics ~ issues of product safety, truth in advertising...
• Citizen-action publics ~ cons orga, environmental groups, minority groups...
• Local publics ~ neighborhood residents n community orga.
• General public ~ public image.
• Internal publics ~ workers, managers, volunteers n BOD.
•
Macroenvironment
1. Demographic environment : Demography is the study of the human populations in terms of
size, density, location, age, gender, race, occupation & other statistics.
2. Baby boomers : born btwn 1946 n 1964. The 78 million ppl born during the baby boom
following the WWII n lasting until the early 1960s. They constitute a lucrative market 4 new
housing n home remodeling, financial services, travel n entertainment, eating out, health n
fitness products... Esp insurance.
3. Generation X : The 45 million ppl born btwn 1965 n 1976 in the “birth dearth” following the
baby boom. They care bout the environment n respond favorably to socially responsible
companies. Less materialistic, prize experience, not acquisition. More interested in job
satisfaction. Many r parents, family comes first, career second.
4. Generation Y : The 72 million children of the baby boomers, born btwn 1977 n 1994. (echo
boomers) they r impatient, now-oriented bunch,requires creative marketing approach.
Comfort with comp, digital n Internet techno.
5. Economic environment : factors that affect cons buying power n spending patterns.
6. Changes in income : upper class (luxury goods), middle class(careful bout spending),
working class(stick to bacis needs n try hard to save), underclass(persons on welfare n many
retirees, count their pennies).
7. Natural environment : natural resources that r needed as inputs by marketers / tat r affected
by marketing acti. (shortages of raw materials, increased gov intervention, increased
pollution)
8. Technological environment : forces that create new techno, creating new product n market
opportunities. (higher research costs, longer times btwn ideas n product introductiob)
9. Political environment : laws, gov agencies n pressure groups that influence n limit various
orga n indi in a given society. ( ++legislation, change gov agency enforcement, more
socially responsible behavior, more cause-related marketing)
10. Cultural environment : institutions n other forces that affect society's basic values,
perceptions, preferences n behav.
11. Secondary cult values : views of themselves, orga, society, nature, n universe.
12. Responding to the Marketing Environment : passively accept, take a proactive stance rather
than being reactive.

Chapter 5 ~ Consumer markets & consumer buyer behavior

1. culture : the set of basic values, perceptions, wants n behaviors learned by a member of
society fr family n other important institutions.
2. Subculture : a group of ppl with shared value systems based on common life experiences n
situations.
3. Social classes : relatively permanent n ordered divisions in a society whose members share
similar values, interests n behav.
4. Opinion leader : person within a reference group who, bcos of special skills, knowledge,
 personality / other characteristics, exerts social influence on others.
5. 5 life-stage segments : youth segment, getting started, builders, accumulators, preservers.
6. Lifestyle : a person's pattern of living as expressed in his / her acti, interests / opinions.
7. Personality : the unique psychological characteristics tat lead to relatively consistent n
lasting responses to one's own environment.
8. Brand personality : the specific mix of human traits that may be attributed to a particular
brand. (sincerity, excitement, competence, sophistication, ruggedness)
9. motive (or drive) : a need tat is sufficiently pressing to direct the person to seek satisfaction
of the need.
10. Perception : the process by which ppl select, organize, n interpret info to form a meaningful
picture of the world.
11. Learning : changes in an indi's behav arising fr experience.
12. Belief : a descriptive thought that a person has bout sth.
13. Attitude : a person's relatively consistent evaluations, feelings, n tendencies toward an object
/ idea.
14. Types of buying decision behavior :
• complex bb ~ cons r highly involved in a purchase n perceive significant diff among brands.
(the product is ex, risky, purchased infrequently, highly self-expressive)
• dissonance-reducing bb ~ cons r highly involved wit an ex, infrequent/risky purchase, but c
little diff among brands. (cons may experience postpurchase dissonance—after sale
discomfort, when they notice certain disadvantages of the product)
• habitual bb ~ low cons involvement n little significant brand diff. (eg salt)
• variety-seeking bb ~ low cons involvement but significant perceived brand diff.
15. The buyer decision process :
• need recognition
• info search
• evaluation of alternatives
• purchase decision
• postpurchase behavior
16. stages in the adoption process :
awareness ~ interest ~ evaluation ~ trial ~ adoption
17. time of adoption of innovations :
innovators ~ early adopters ~ early majority ~ late majority ~ laggards.